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Determinants of Ethical Behavior

This document discusses several determinants of unethical behavior in business: personal ethics, decision-making processes, organizational culture, unrealistic performance expectations, and leadership. It notes that a lack of consideration for ethics in decision-making, organizational cultures that deemphasize ethics, and pressure to meet unrealistic goals can lead individuals to violate their personal ethics and act unethically. Strong personal ethics, ethical decision-making, cultures that reinforce ethical values, and leadership that establishes an ethical example are important for preventing unethical behavior.

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MAHENDRA SHIVAJI DHENAK
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15K views

Determinants of Ethical Behavior

This document discusses several determinants of unethical behavior in business: personal ethics, decision-making processes, organizational culture, unrealistic performance expectations, and leadership. It notes that a lack of consideration for ethics in decision-making, organizational cultures that deemphasize ethics, and pressure to meet unrealistic goals can lead individuals to violate their personal ethics and act unethically. Strong personal ethics, ethical decision-making, cultures that reinforce ethical values, and leadership that establishes an ethical example are important for preventing unethical behavior.

Uploaded by

MAHENDRA SHIVAJI DHENAK
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Determinants of Ethical Behavior / The Roots of Unethical Behavior

Personal Ethics

Generally accepted principles of right and wrong governing the conduct of individuals

 Our personal ethical code exerts a profound influence on the way we behave as
businesspeople

 The first step to establishing a strong sense of business ethics is for a society to
emphasize strong personal ethics

 Expatriate managers may experience more than the usual degree of pressure to
violate their personal ethics

Decision-Making Processes

 Several studies of unethical behavior in business have concluded that businesspeople


sometimes do not realize they are behaving unethically primarily because they
simple fail to ask….
…. “Is this decision or action ethical?”

 Often the result of applying straight-forward business calculus to a decision without


considering important ethical issues

Organization Culture

 The climate in some businesses does not encourage people to think through the
ethical consequences of business decisions
 Result of an organizational culture that deemphasizes business ethics, reducing all
decisions to be purely economic

Unrealistic Performance Expectations

 Pressure from the parent company to meet unrealistic goals that can only be
attained by cutting corners or acting in an unethical manner

 This often results in managers will violating their own personal ethics and engage in
unethical behavior

 An organizational culture with values that reinforce ethical behavior is an essential


ethical component

Leadership

Leaders help to establish the culture and values of an organization, and they set the
example that others follow

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